5 Key Real Estate Terms You Should Be Aware Of

5 Key Real Estate Terms You Should Be Aware Of

By SiliconIndia   |   Thursday, September 27, 2012   |    3 Comments
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Bangalore: There are several real estate terms which are important to know. Before entering into real estate market or planning to buy a property or investing in one, some common real estate terms should be known. If not in-depth, but to know such terms will be useful to understand the current market trend. Below are few terms to know in real estate.

Carpet Area:

Car­pet area is the actual space which you can use in a house. In perfect words, carpet area is the area of the house that does not include the areas of the inner walls. It is the enclosed space within the walls which is used to lay carpet. Even when calculating the carpet area, the area for terrace and balconies are normally considered as half of the main area.

Built-up area:

Built-up area includes the carpet area, the thickness of the outer walls, inside walls and the balcony area. Also, the terrace area is considered as half of the built-up area. This is the actual area of the house that comprises the area covered by the walls. Built-up area is just 10 to 20 percent extra than the carpet area. Sometimes built-up area is also called as the plinth area.

Super built-up area:

The super built-up area comprises built-up area and the usable areas like lobby, lifts, stair cases, corridors, walkways, terrace of the house and so forth. Usually, super built-up area is 15 to 25 percent extra than the built-up area. Sometimes, in multi-dwelling units like flats and apartments, common areas like gymnasium, swimming pool, garden and clubhouse to name a few are also comes in super built-up area. Super built-up area is also known as saleable area. However, most of the developers quote their prices in accordance with saleable area.

Per square foot rate:

Normally, developers use per square foot rate on the super built-up area to decide the actual value of the building. Interestingly, this is the main reason for which the super built-up area is often known as the saleable area.

Floor Space Index

Floor Space Index or FSI is the actual proportion between the built-up area and the available plot area allowed by the government for a particular location. Higher the FSI, then higher is the built-up area. And premium FSI means permission is required to develop extra floor space by paying premium amount.

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